ACWA Power sells 32% stake in Shuqaiq IWPP, 32% in the O&M contract for SAR 391.5 million

ACWA POWER Company announces the closing of the transaction for the sale of its 32% effective shareholding (entire shareholding) in Shuqaiq Water and Electricity Company (“Shuqaiq IWPP”), an equity accounted investee of ACWA Power, including the sale of 32% interest (partial shareholding) in the O&M contract, which was previously with the Company’s wholly owned subsidiary, First National Operations and Maintenance Company (“NOMAC”), effective from 17 March 2022 (“the Closing Date”).

On the Closing Date, the shares were transferred to Al Jomaih Energy and Water Company (“the Buyer”), having met all conditions to the sale/closing as per The Share Purchase Agreement that was signed on 7 September 2021. The sale consideration of SAR 391.5 million was paid in cash by the Buyer.

Shuqaiq IWPP is an oil-fired asset located in the Kingdom of Saudi Arabia, with 850 MW power and 212,000 m3/day water desalination capacity. The project commenced commercial operations in 2011 and has a 20-year PWPA (offtake agreement) expiring in 2031.

The carrying amount of the assets as at the Closing Date was SAR 398.4 million, the company said.

“The sale is part of ACWA Power’s capital recycling strategy and brings it a step closer to its target of reducing its carbon intensity by 50% by 2030 compared to 2020 levels and achieving net zero emission by 2050.” it added.

The company also said that the transaction did not result in any material financial impact to the company and that there are no related parties.